US Treasury Secretary Bessent says interest rates remain well above neutral and policy should not be restrictive; models suggest 2.5% to 3.25% for the FFR

This statement from Treasury Secretary Bessent suggests a continuation of a hawkish stance, indicating that current interest rates are still above what is considered neutral.

Newsquawk StaffPublished 8 Jan 2026, 18:38 UTCOn the live feed at 18:18 UTC — 8 more headlines followed before this page went public

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18:20

US Energy Secretary says US can market oil at a better price than Venezuela, via Fox News interview; not going to cut off China; Venezuela oil production could be up 50% in the next 18 months

18:19

UK Spokeswoman says PM Starmer and US President Trump held a phone call this afternoon, discussed Euro-Atlantic security and agreed on the need to deter an increasingly aggressive Russia in the High North

18:18

US Treasury Secretary Bessent says interest rates remain well above neutral and policy should not be restrictive; models suggest 2.5% to 3.25% for the FFR

18:16

NY Fed RRP op demand at USD 3.1bln (prev. 4.6bln) across 7 counterparties (prev. 8)

18:16

US Treasury Secretary Bessent says welfare fraud dollars may be bigger in other states; as much as USD 600bln may disappear in government fraud each year

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We are looking at a smaller fiscal deficit this year, between USD 300-500bln.

Context

Moreover, the fiscal deficit projection hints at a potential easing of fiscal pressure, which may influence the Federal Reserve's considerations regarding future monetary policy adjustments and interest rates.

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